Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. Pretax income ?
Gross profit ?
Allocated costs (uncontrollable) $2,040
Labor expense 41,580
Sales 188,000
Research and development (uncontrollable) 315
Depreciation expense 16,000
Net income/(loss) ?
Cost of goods sold 118,440
Selling expense 1,260
Total expenses ?
Marketing costs (uncontrollable) 780
Administrative expense 700
Income tax expense (21% of pretax income) ?
Other expenses 310

Required:
Calculate the profit margin, return on investment, and residual income. Assume an investment base of $100,000 and 6% cost of capital.

Northern lights electronics just completed plans to distribute its new tablet. the product has several unique features that differentiate it from competitor products. the marketing team plans to begin a roll-out with to only one traditional retailer for the first two months. this strategy will give consumers the perception of the product’s stand-out personality and increase demand. marketing will proceed with for the next four months, where it plans to distribute to three other retailers, as well. for the last six months of the year, it will initiate distribution agreements with discount retailers and online retailers, and any other electronics store that wants to carry it. the marketing team is confident that the tablet will cycle through the first three stages of its product life cycle quickly. as the tablet reaches maturity during the second half of its first year in the market, it is good strategy to proceed with as described above. intensive distribution; selective distribution; exclusive distribution exclusive distribution; selective distribution; intensive distribution tertiary level distribution; secondary level distribution; mono-level distribution mono-level distribution; secondary level distribution; tertiary level distribution